President vows zero tolerance for oil, gas corruption

President Netumbo Nandi-Ndaitwah says her administration will not tolerate any corruption in the oil and gas sector.

In a speech delivered on her behalf at the seventh edition of the Namibia International Energy Conference yesterday, Nandi-Ndaitwah said: “Corruption has no place in this journey, while integrity must guide all Namibians at every step”.

She added that good governance is the foundation for Namibia’s energy ambitions and, therefore, her administration is committed to transparency, accountability and ethical leadership.

“Our institutions will continue to be strengthened to ensure that Namibia’s natural wealth is managed fairly, responsibly and in the best interest of its people.

“Our goal is to enable meaningful Namibian involvement by building skills, supporting local businesses, and fostering an environment where talent and enterprise can thrive,” said Nandi-Ndaitwah.

Institute for Public Policy Research (IPPR) executive director Graham Hoopwood says the president needs to move quickly to implement the Access to Information Act which mandates the publication of all government licences, contracts and permits, including petroleum agreements.

“In addition, the public should have access to a whole range of data and information such as oil revenues, taxes paid and environmental plans. Local content in supply chains is crucial, but to make sure that a broad range of Namibians benefit and not just a connected elite, we need clear and enforceable procurement rules, as well as transparent reporting requirements,” says Hopwood.

In a report by IPPR last year, Hopwood said Namibia should keep corrupt actors – whether foreign or Namibian – out of the oil and gas sector.

He said given the sector’s potential to generate significant revenue, it is vital that stringent safeguards are applied to prevent the kind of corruption that has plagued other resource-rich nations.

During the same conference last year, former minister of mines and energy Tom Alweendo said there were reported incidents of oil companies using Namibian citizens as fronts for local participation.

This was to comply with the mines and energy ministry local content policy.

The policy requires oil and gas licence holders to produce an annual local content plan to include a section on procurement detailing the involvement of local firms in supplying goods and services.

The definition of ‘local’ in the policy is that at least 51% of the equity in a business must be owned by Namibians.

At the time, the International Monetary Fund had recommended that Namibia make all petroleum agreements between the government and oil companies publicly available. Minister of industries, mines and energy Natangwe Ithete says the government will continue to manage resources to ensure benefits reach all Namibians.

“This can be done through strengthened governance, improved legal and fiscal frameworks, and prioritised value addition.

“Solar energy is already playing a leading role in improving domestic generation capacity, and enhancing sustainability and energy security,” says Ithete.

However, statistics show that less than 12% of Namibians utilise solar energy.

Speaking to Desert FM yesterday, energy analyst Gawie Kanjemba said the move by the president to move the oil and gas sector under her office was a good idea.

“And that is something very unique that a special body or someone with authority should be doing. And by that sense or by that logic, she’s right in doing that,” Kanjemba said.

He said this responsibility comes with risks around transparency.

The analyst believes the country is heading in the right direction, but the government must make sure to have checks and balances in place to make sure those in charge are accountable.

“Because we cannot wait for her [president Nandi-Ndaitwah] to finish her term. We have one chance at this. If we don’t do it right, we’re sort of screwed,” Kanjemba said.

He said current beneficiation policies are avoiding local ownership in the industry.